National Bank to acquire Canadian Western Bank | Motive Financial | Discussion forum

zgic said

110% premium over today's close price. wow. The transaction is expected to close by the end of next year. So we have some time to exit from Motive I guess.  

Why should we need to exit from Motive if CWB is acquired by National Bank?

Hmm...I'm struggling to see how Motive will fit into this merger.

Pythagoras said

Thanks!
That makes sense.  

Sort of like RBC recent acquisition of HSBC?

We hear you, Dude ⬆

As with All such transactions ... when one FI gobbles up another FI, the GICs of the devoured FI instantly become 'Worthless'❗

Note the wink,

Dean

P.S.
For those who may be interested, here's a few more details ⬇
https://www.cbc.ca/news/canada/edmonton/national-bank-reaches-deal-to-buy-canadian-western-bank-at-5b-valuation-1.7232023

This confirms why Motive has been actively recruiting new customers the last several months.
In the Fall they successfully bribed me to make a referral with $100 in gas money.

NB has been on a roll. My limited experiences with them have shown they have some of the highest and most broadly applied fees out there. I would not be in a hurry to do business with them again but apparently a lot of people don't care or don't pay attention.

It doesn't matter to me I have 2x 100k GiC's @over 5% for 10 years both paying monthly 9 years on both of them left. The Interest is deposited into the savvy savings ,if that rate goes away,I will just start withdrawing every month

Just curious, does National Bank have an online-only bank subsidiary, like CWB has with Motive? I can't find any relevant information about this.

If not, perhaps National Bank, being clueless about this kind of banking, will leave Motive alone or even expand it. Hope springs eternal

I too have around $100K unregistered GICs at Motive, all 1 year laddered expiries at 5.4/5.8% (to avoid needing HISA's anymore), so this takeover is concerning in light of all the big 5 takeovers of the past.

I doubt this one will have trouble with regulatory approval either, even though IMO I think it should (helps National to become part of the big 5 'club'). But if RBC and HSBC can happen, there's no hope for this one being turned away.

As the stock price of National Bank (NB) drops or rises, so does the value of each CWB share as the deal is 1 CWB share will convert to .45 NB shares. So the 110% value being touted is meaningless and why CWB did not go up by this percentage today.

This announcement also explains the cold calls Motive was making to customers regarding their GIC rates as the bigger the asset base, the better the valuation.

NB is the 6th largest bank so I would say it is safe to invest somewhat more than 100k.

My feeling is that NB is buying CWB in part to have an online presence in the manner that Bank of Nova Scotia has Tangerine. Unfortunately, Motives great rates will turn into the blah regular rates that Tangerine has. All in all, not good for the banking landscape in Canada. So enjoy Motive while it lasts over the next 1.5 yrs!

I have maxed out my CDIC insurance with CWB and Motive, and I also have RIF's spread over CWB, Canadian Western Trust and Valiant trust.

I am wondering how these other entities will be treated in this takeover. Will they be part of the deal and become part of National Bank, or are they considered as separate companies?

Canadian Western Trust and Valiant are both separate as far as CDIC is concerned.